PAM - Palabora - Trading Statement

PAM - Palabora - Trading Statement                                              
PALABORA MINING COMPANY LIMITED                                                 
(Incorporated in the Republic of South Africa)                                  
Registration number - 1956/002134/06                                            
JSE Code: PAM        ISIN: ZAE000005245                                         
("Palabora" or "the Company")                                                   
TRADING STATEMENT                                                               
As required by the Listings Requirements of the JSE Limited, shareholders are   
advised that Palabora`s earnings for the year ended 31 December 2010 are        
expected to be as follows:                                                      
-    Earnings before interest, tax, depreciation and amortisation (EBITDA)      
between R 1 470 million (3 063 cents per share) and R 1 590 million (3 313  
    cents per share);                                                           
-    Basic earnings between R 555 million (1 156 cents per share) and R 610     
    million (1 271 cents per share);                                            
-    Headline earnings between R 560 million (1 167 cents per share) and R 615  
    million (1 281 cents per share);                                            
-    Cash and cash equivalents between R 1 570 million and R 1 690 million; and 
-    Net cash between R 1 465 million and R 1 610 million.                      
Palabora holds the majority of its cash and cash equivalents in foreign         
currency, most notably the US Dollar. At 31 December 2010 Palabora estimated    
that 88% (2009:63%) was held in US Dollars, 9% (2009: 35%) in South African Rand
and 3% (2009:2%) in other currencies, notably the Euro and the British Pound.   
The above guidance compares with EBITDA of R 1 128 million (2 358 cents per     
share), basic earnings of R 284 million (587 cents per share) and headline      
earnings of R 289 million (598 cents per share) for the previous year. The      
reported operating earnings for 2009 were R 577 million. This has been adjusted 
to arrive at the EBITDA of R 1 128 million by including the depreciation expense
of R551 million.                                                                
EBITDA is operating income excluding finance costs, foreign exchange gains and  
losses, income tax expenses and depreciation and amortisation.                  
Cash and cash equivalents were R 1 395 million and net cash R 1 292 million at  
31 December 2009.                                                               
Shareholders are advised that the information contained in this trading         
statement has not been reviewed and/or reported on by the external auditors of  
the Company. It is anticipated that the results for the year ended 31 December  
2010 will be published on or about 7 February 2011.                             
Phalaborwa                                                                      
25 January 2011                                                                 
Sponsor: Barnard Jacobs Mellet Corporate Finance (Pty) Limited                  
Date: 25/01/2011 09:52:06 Supplied by www.sharenet.co.za                     
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